Owner of Regus and Spaces plans to grow UK network to over 2,000 sites through a combination of franchise and company-owned operations
Flexible workspace provider IWG, which owns the Regus and Spaces brands, has seen a 19 per cent increase in Q3 sales of smaller flexible workspaces that can accommodate one-two people, as a result of distributed working and employee demand to work closer to home following the COVID-19 outbreak.
The crisis has accelerated the trend for hybrid working, which was already set to pump at least £12 billion into local economies over the next 10 years, according to IWG’s 2019 Suburban Economic Survey.
This means the race is on to get into flexible office franchising, Julian Chambers, head of franchise at IWG, says.
He adds: “What we’re seeing is increased demand from businesses who have learned from the last 10 months.
“They want to keep the benefits of flexible working because they know it will maximise staff productivity and reduce their overheads.
“This demand to work in a new way is defined by a combination of working locations. For many businesses, this still means a central city office, but it’s also a space to work from home, along with flexible workspaces that are somewhere in between the two. This is good news for franchise professionals looking to strengthen their business portfolio.
“Unlike gyms, hotels and many food franchises, flexible workspaces were able to stay open to customers during the pandemic and there’s huge unmet demand for new centres in suburbs and secondary cities around the country, with no other nationwide brands in competition.
“The shift to hybrid working is driving a solid growth in our sales from office workers who want to continue working closer to home in smaller towns and cities, so now is a great time to explore flexible office space within a diversified franchise portfolio.”
IWG has 320 UK centres. It plans to grow this number to over 2,000 through a combination of franchise and company-owned operations.
Franchised IWG centres in suburbs and secondary cities are already experiencing high growth.
Suburban London and Cambridgeshire centres reported 20-30 per cent growth throughout the pandemic and new franchised spaces in the Midlands opened with an additional 30 per cent demand above what was expected.
IWG, which recently joined the British Franchise Association, offers franchisees a tried and tested business model, while the UK franchise team provides advice on the best location to open centres and finding the right buildings, as well as help to structure floor plans to maximise revenue, IT and marketing services and business development.
Pip Wilkins, CEO of the bfa, says: “Office space is one of the most compelling franchise opportunities on the market and IWG is the biggest name in the business, offering a support package that is second to none.”